Tag: Britannia Industries

Britannia shares jump the most since November 2022 to near record levels, become top gainer on Nifty 50

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Britannia Industries shares rose almost 8% in intraday trade to become the top Nifty 50 gainer on May 6. The gain comes after the fast-moving consumer goods major reported its quarterly results, which were muted but almost in line with CNBC-TV18 poll expectations.

Britannia shares traded 7.68% higher at ₹5,109.20 on NSE at 12:16 pm. Even as the stock has risen after the January to March 2024 quarter result, so far in 2024 (year-to-date), it has erased 8% of investors’ wealth as compared to which has gone up 2.5% during the period.

The firm’s consolidated net profit declined 3.8% year-on-year to ₹536.61 crore as compared to ₹557.60 crore in the same period last year. The company’s revenue rose a percent to ₹4,069.36 crore, up from ₹4,023.18 crore reported in the corresponding period of the previous fiscal year.

On the operational front, Britannia experienced a slight decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the March quarter, dropping 1.7% to ₹785.5 crore compared to ₹800.9 crore in the corresponding period last year. Margins also decreased marginally by 50 basis points to 19.4%.

Despite the muted Q4 results, global brokerage firms Morgan Stanley and CLSA have maintained their overweight and outperform ratings, respectively, on the shares of the FMCG company, which owns brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold.

CLSA has set a target price of ₹5,636 on Britannia shares, implying that it sees a potential upside of 18% from the closing price of ₹4,744.60 on May 3. The brokerage noted that the revenue growth was 2% below its expectation while absolute EBITDA and profit after tax (PAT) came in at 3% and 1% lower than its projection.

Morgan Stanley, meanwhile, expects the stock to rise to ₹5,243, meaning it sees a potential upside of 10.5%. The analyst pointed out that the firm’s revenue was up 8% on a five-year compound annual growth rate (CAGR) basis, which is similar to that in Q2.

Also Read | FMCG Q4FY24 preview: Analysts on lookout for demand recovery signals

Though Motilal Oswal called Britannia’s Q4 results an “uninspiring show,” it highlighted that the company’s market share revived due to the pricing action taken to remain competitive and higher investments in brands supported by distribution expansion.

Following the results, Britannia’s Vice Chairman and Managing Director Varun Berry asserted that the company showed resilience in a challenging economic climate. He highlighted that strategic pricing measures were taken during the quarter under review to maintain competitiveness and expand distribution channels, particularly in rural areas.

Britannia said it remains cautiously optimistic, keeping a close eye on commodity prices and global geopolitical developments. The company intends to maintain its focus on cost-efficiency initiatives while continuing to invest in brand building and market share expansion.

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Britannia Industries Q3 | Net profit beats estimates despite 40% drop

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Britannia Industries Ltd on Tuesday (February 6) reported a 40.4% year-on-year (YoY) decline in net profit at ₹555.7 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, Britannia Industries posted a net profit of ₹932.4 crore, the company said in a regulatory filing. CNBC-TV18 poll had predicted a profit of ₹550 crore for the quarter under review.

The company’s revenue from operations increased 1.42% to ₹4,256.3 crore against ₹4,196.8 crore in the corresponding period of the preceding fiscal. CNBC-TV18 poll had predicted a revenue of ₹4,300 crore for the quarter under review.

At the operating level, EBITDA increased 0.4% to ₹821.1 crore in the third quarter of this fiscal over ₹817.6 crore in the year-ago period. CNBC-TV18 poll had predicted an EBITDA of ₹815 crore for the quarter under review.

The EBITDA margin stood at 19.3% in the reporting quarter against 19.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. CNBC-TV18 poll had predicted a margin of 19% for the quarter under review.

Britannia’s consolidated sales for the quarter ended December 31, 2023, stands at ₹4,192 crore, growing 2% over last year and operating profit stands at Rs 743 crore.

For the nine months ended December 31, 2023, consolidated revenue stands at ₹ 12,532 crore, growing 3.6% over the previous year, and operating profit stands at ₹2,162 crore, growing 15.6% over the previous year.

Varun Berry, vice chairman and managing director, said, “Over the last 24 months, we achieved a robust 19% growth in revenue, coupled with a commendable 52% increase in operating profit. We capitalised on the power of our brands with requisite investments, and actioned judicious price corrections, which helped us maintain competitiveness and gain market share.”

On the cost and profitability front, we will stay vigilant of the commodity prices & evolving geopolitical situation. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profitability. We remain committed to the ESG framework of People, Growth, Governance and Resources to build a sustainable and profitable business.”

The results came after the close of the market hours. Shares of Britannia Industries Ltd ended at ₹5,006.20, down by ₹114.50, or 2.24%, on the BSE.

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Britannia Q1 Results | Volume growth flat compared to estimates of 4-5%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bakery foods company Britannia Industries Ltd on Friday reported a 35.7 percent year-on-year (YoY) jump in net profit at Rs 455.5 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, Britannia Industries posted a net profit of Rs 335.7 crore, the company said in a regulatory filing. CNBC-TV18 Polls had predicted a profit of Rs 515 crore for the quarter under review.

The total revenue during the period under review stood at Rs 4,010.7 crore, up 8.4 percent against Rs 3,700.9 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted revenue of Rs 4,110 crore for the quarter under review.

Also Read: CESC Q1 Results | Net profit at Rs 347 crore, revenue up 5%

At the operating level, EBITDA jumped 37.6 percent to Rs 689 crore in the first quarter of this fiscal over Rs 500.7 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 17.2 percent in the reporting quarter as compared to 13.5 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Britannia’s consolidated sales for the first quarter ended June 30, 2023, grew 9 percent to Rs 3,970 crore and operating profit grew 37 percent to Rs 618 crore. The company’s volume growth was flat compared to estimates of 4-5 percent.

Also Read: HPCL back in black with Q1 net profit of Rs 6,204 crore, beats estimates

Varun Berry, executive vice chairman and managing director, said, “As market leaders, we led pricing actions to offset inflation & maintain profitability. However, in this quarter, commodity prices marginally softened & hence, the local competition intensified.”

“Our new greenfields in Tamil Nadu & Uttar Pradesh were efficiently scaled up. With capacity and capability enhancements planned in Ranjangaon Food Park, we are well poised to further extract productivity and enhance competitiveness in these growing markets,” Berry said.

The results came after the close of the market hours. Shares of Britannia Industries Ltd ended at Rs 4,803.00, up by Rs 12.95, or 0.27 percent on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Britannia Industries re-appoints Varun Berry as executive vice-chairman and MD

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Leading bakery foods company Britannia Industries Ltd on Friday said it has re-appointed Varun Berry as executive vice-chairman and managing director of the company from April 1, 2024.

“The board of directors, based on the recommendation of the Nomination and Remuneration Committee, approved the re-appointment of Varun Berry, as the executive vice-chairman and managing director of the company for a period of five years with effect April 1, 2024, to March 31, 2029, subject to the approval of the members of the company,” it said in an exchange filing.

Also Read: Godrej Properties Q4 Results: Net profit rises 58% to Rs 412 crore; shares rise

Berry holds a graduate degree in Engineering (BE Mechanical) from Panjab University. He has an experience of over 32 years with premier companies like Hindustan Unilever and Pepsico, both in India and overseas, and a successful track record in leading startups, turnarounds, joint ventures and growth businesses.

He joined the company as vice-president and chief operating officer with effect from February 1, 2013. He was appointed as managing director on April 1, 2014. Berry was appointed as executive vice chairman and managing director with effect from September 23, 2022.

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Britannia shares advance after board approves highest interim dividend in three years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The board of Britannia Industries has approved an interim dividend of Rs 72 per share for the current financial year that ended on March 31. This is the highest dividend payout by the confectionary company in the past three years.

Previously, the company had approved a dividend of Rs 83 in August 2020. In June 2022, the company had paid a dividend of Rs 56.5 per share for financial year 2022 and also announced an interim dividend of Rs 62 per share in April 2021.

Record date for determining the eligibility of shareholders for payment of the interim dividend is April 13.

The interim dividend is subject to deduction/withholding of applicable taxes and will be paid within the stipulated timelines as prescribed under law, the company said in an exchange filing.

The dividend payout by the company comes it sold its 49 percent stake in its wholly-owned subsidiary Britannia Dairy Pvt. Ltd. as part of its joint venture agreement with French company Bel SA for around Rs 262 crore in November last year.

Aided by the stake sale in Britannia Dairy, the company had announced more than two-fold growth in its net profit for the December quarter to Rs 932.40 crore from Rs 369.18 crore in the year-ago quarter.

Britannia’s management in February told CNBC-TV18 in an interaction that it aims to achieve 35 percent of its revenue from the non-biscuit portfolio over the next three years and has a long-term target of 50 percent.

Shares of Britannia are trading 0.4 percent higher at Rs 4,341. The stock has been flat this year.

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Britannia’s croissant business crosses Rs 100 crore revenue mark in FY23

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Leading bakery foods company Britannia Industries Ltd on Thursday said its Treat Croissant business has crossed Rs 100 crore in revenues in this financial year, within a year of its national roll-out across the country.

Treat Croissant is manufactured at Britannia’s own manufacturing facility and the recipe has been customised to cater to the Indian palette.

Varun Berry, executive vice chairman, and managing director of Britannia Industries said the company continues to make steady progress on snacking business in line with the vision to be a responsible global total foods company.

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Through Treat Croissant, Britannia aims to bring world-class product experiences to consumers at affordable prices, the company said.

Berry said, “We will be looking to develop the nascent category through consumer-led franchise building and popular flavour extensions. Our target is to hit the Rs 300 crore mark in three years.”

Yudhishter Shringi, chief business officer, of adjacency business, Britannia Industries, said, “The growing adoption of Indian consumers to western food trends along with the increasing demand for ready-to-eat snacks, especially among GenZ and millennials’ indicate that Treat Croissants is positioned to grow significantly.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

International Women’s Day | Britannia’s Madurai factory aims to increase women workforce to 70%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The past 12 years at Britannia’s Madurai plant have been life-changing for 48 year-old Meena Priya not just professionally, but personally. She started as a data entry professional, and now oversees the factory’s entire production department, after learning the ropes across departments. This growth has helped her contribute significantly to her family’s quality of life, and earned her recognition in her neighbourhood.

Priya says, “I have been working over here for 12 years. People come to my area and ask about the person who is working at the biscuit company. That’s how people know me in my area. Even the postman knows my house like that. When I joined here my kids were in LKG and 4th standard. I grew step by step here and educated both my daughters till post-graduation and got my elder daughter married. Working here helped me do all of this.”

Experts agree that despite numerous efforts being made by companies, India still has a long way to go when it comes to increasing female labour force participation rate from the current 25 percent. In rural areas, this number is slightly higher, at 27 percent — but still not enough to write home about. What’s encouraging, however, are stories of women like Meena Priya and P Pandirani, who are rewriting the rules, and inspiring more women to enter the workforce. Policies that support such enrolment are also a big help.

P Pandirani a Lab Chemist Officer at Britannia’s Madurai Factory says, “When people saw me going to work during COVID, they would come and speak to me and ask me, what work I do? People asked me if they could also come and work. I said everyone can come for work, there’s a pick up and drop facility. Now there are many people from my town who are coming for the general shift. They shared with me that their families are also happy.”

Such policies have resulted in 65 percent of this plant’s 1,400-strong workforce comprise of women. These workers say the best thing about working here has been the opportunity to learn different aspects of the operations and functioning, explore their interests, work on their potential, and rise up the ranks.

Priya says, “What I like is that we get to learn a lot of things. I was told that I don’t just need to do data entry and that’s how I got into production and started observing things. I have been in the admin team, I’ve been in-charge of hygiene and now I’m with manufacturing. We have the freedom to explore other departments. They give us whatever help we need and train us. No one will ever question why we are learning this.”

Apart from basic facilities like transport, crèche, etc, Britannia also offers programs aimed at physical and mental well-being of women along with awareness on fitness, nutrition and work life balance. This, the company says, has not only improved productivity, but has helped in better retention of female workers.

At the ground level too, these 900 women, Britannia says, have proven to be more efficient than their male counterparts — adding much more value to the workforce.

Indranil Gupta, Head of Manufacturing at Britannia Industries says, “They actually bring in lot of engagement, environment in the shop floor by virtue of the nature of female employees. So, our challenge of attrition has drastically come down by increasing the female population. Productivity wise, they are more attentive, we have seen that packing is a very repetitive type of job. And we have seen that they are more attentive, they don’t get bored like the male employees and that improves the packing efficiencies for us.”

The company is backing up these claims with intent. It plans to increase women workforce at its Madurai plant to 70 percent… and is working on growing its national diversity ratio from the current 41 percent to 50 percent by the end of 2024.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Britannia aims to achieve half of its revenue from the non-biscuit portfolio

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Britannia’s management told CNBC-TV18 in an interaction that aims to achieve 35 percent of its revenue from the non-biscuit portfolio over the next three years and has a long-term target of 50 percent.

New launches like Biscafe, Golmaal, NC Seeds & Herbs and Marble cake also did well during the December quarter. The management said that these new businesses are growing faster than the average rate.

The management also said the time is now right to get back to its goal of becoming a “total foods company.” The company aims to achieve growth in the mid-teens and volume growth of 10 percent for the core business.

For the December quarter, the company delivered on the operational front, with margin almost hitting a record high. The company has also consistently gained market share for 39 consecutive quarters.

Britannia’s quarterly revenue met expectations, while all other parameters, including the bottomline exceeded estimates. The company’s profit was also aided by an exceptional item of Rs 376 crore.

The expansion in margin during the quarter was attributed to opportunistic buying and moderation in inflation levels. Britannia’s gross margin expanded 570 basis points from last year and 470 basis points from the September quarter.

The company is looking at other areas of cost cutting, including energy savings. It will save 2.5 percent on costs this year compared to the earlier target of 2 percent. Britannia also aspires to sustain its EBITDA margin above the pre-Covid levels, as all raw material cost inflation is covered by price hikes and cost savings.

Brokerage firm Morgan Stanley maintained its overweight rating on Britannia with a price target of Rs 4,427. Jefferies attributed the earnings beat to Britannia’s EBITDA margin, which was the highest in nine quarters. The brokerage also has a buy rating on the stock with a price target of Rs 5,000.

Shares of Britannia are trading 4.1 percent higher at Rs 4,550, and are among the top gainers on the Nifty 50 index.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow